DoD Awards $158M Lockheed Martin Contract for PRSM Increment 2 Development
Contract Overview
Contract Amount: $158,004,676 ($158.0M)
Contractor: Lockheed Martin Corporation
Awarding Agency: Department of Defense
Start Date: 2022-09-22
End Date: 2026-01-28
Contract Duration: 1,224 days
Daily Burn Rate: $129.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TASK ORDER AWARDED TO LOCKHEED MARTIN MISSILES & FIRE CONTROL FOR THE PERFORMANCE WORK STATEMENT (PWS) ENTITLED, "PRSM INCREMENT 2 DEVELOPMENT AND DEMONSTRATION".
Place of Performance
Location: GRAND PRAIRIE, DALLAS County, TEXAS, 75051
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $158.0 million to LOCKHEED MARTIN CORPORATION for work described as: TASK ORDER AWARDED TO LOCKHEED MARTIN MISSILES & FIRE CONTROL FOR THE PERFORMANCE WORK STATEMENT (PWS) ENTITLED, "PRSM INCREMENT 2 DEVELOPMENT AND DEMONSTRATION". Key points: 1. Significant investment in missile defense technology. 2. Sole-source award to incumbent contractor raises competition concerns. 3. Long-term contract duration (over 3 years) requires ongoing oversight. 4. Focus on R&D in advanced physical sciences.
Value Assessment
Rating: questionable
The contract value of $158M for R&D is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to potential alternatives or previous similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers as there was no market pressure to drive down the price.
Taxpayer Impact: The lack of competition for this large contract means taxpayers may not be receiving the best possible value for their investment.
Public Impact
Enhances national defense capabilities through advanced missile system development. Supports high-tech research and development jobs within the defense sector. Potential for technological advancements with broad applications beyond defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- High contract value requires rigorous oversight.
- Long performance period increases risk of cost overruns or scope creep.
Positive Signals
- Award to established contractor with proven expertise.
- Focus on critical defense technology development.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for technological advancement but requires careful management to ensure value and avoid inefficiencies.
Small Business Impact
The awardee is Lockheed Martin Corporation, a large business. There is no indication that small businesses were involved in this specific task order, suggesting missed opportunities for small business participation.
Oversight & Accountability
Given the sole-source nature and significant value, robust oversight is essential to monitor progress, control costs, and ensure the contractor meets performance requirements effectively.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Potential for cost overruns due to fixed-fee structure on R&D.
- Long contract duration increases risk of scope creep.
- Dependency on a single contractor for critical technology.
- Limited visibility into small business subcontracting opportunities.
Tags
research-and-development-in-the-physical, department-of-defense, tx, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $158.0 million to LOCKHEED MARTIN CORPORATION. TASK ORDER AWARDED TO LOCKHEED MARTIN MISSILES & FIRE CONTROL FOR THE PERFORMANCE WORK STATEMENT (PWS) ENTITLED, "PRSM INCREMENT 2 DEVELOPMENT AND DEMONSTRATION".
Who is the contractor on this award?
The obligated recipient is LOCKHEED MARTIN CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $158.0 million.
What is the period of performance?
Start: 2022-09-22. End: 2026-01-28.
What is the justification for the sole-source award, and what steps were taken to ensure the price is fair and reasonable?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. The contracting agency should have conducted a price analysis, comparing the proposed costs to historical data, independent government estimates, or commercial price lists to determine fairness and reasonableness.
What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effectiveness?
Key performance indicators would likely focus on technical milestones, system performance metrics, and adherence to the PWS. Measurement would involve regular technical reviews, testing and validation of developed components, and progress reports against a defined schedule. The government will likely conduct source selection evaluation criteria to ensure the contractor meets all requirements.
What is the potential for technology transfer or spin-off applications from this R&D effort, and how is that being tracked?
R&D contracts, especially in advanced physical sciences, often yield technologies with dual-use potential. Tracking mechanisms might include intellectual property clauses in the contract, regular technical interchange meetings, and specific reporting requirements on potential commercialization pathways. The government may also have a vested interest in promoting such transfers to maximize return on investment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
Address: 1701 W MARSHALL DR, GRAND PRAIRIE, TX, 75051
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $212,283,795
Exercised Options: $158,004,676
Current Obligation: $158,004,676
Subaward Activity
Number of Subawards: 62
Total Subaward Amount: $16,241,189
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W31P4Q22D0002
IDV Type: IDC
Timeline
Start Date: 2022-09-22
Current End Date: 2026-01-28
Potential End Date: 2027-02-27 00:00:00
Last Modified: 2026-01-20
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